Hi,
I bought a flat A on 01-Oct 2016 and am planning to sell my flat B by 30-Sep-2017, so as to adjust the capital gains from flat B against the purchase of flat A. While I have a buyer the final sale deed registration for flat B will happen only after 30-Sep-2017 (in mid-Oct). Will I be liable for capital gains tax if the buyer of flat B pays the capital gains I would incur prior to 30-Sep-2017 and rest of the amount by mid-Oct ?
To make it simple, my capital gains will be ~30 lakhs, whereas overall sale value of flat B is 1.2 crore. So is it ok if the buyer has paid 30 lakhs by 30-Sep-2017 and remaining amount by mid-Oct during time of final registration ?
Note that I can go for a registered agreement for sale now with the payment schedule (30 lakh by 30-Sep-2017) and registration date mentioned as 15-Oct-2017 and do a final registration on 15-Oct-2017.
4 Answers
Hi,
The new house has to be bought one year before the transfer of the first house or within two years after the sale.
There are conflicting views on whether to consider 'date of agreement' or 'date of registration/sale' for calculation of Capital Gains.
Date of Agreement generally holds good for an 'under-construction property'.
Related articles :
https://www.relakhs.com/how-to-save-capital-gains-tax-on-sale-of-land-house-property/
https://www.relakhs.com/real-estate-property-transfer-deed-types/
Ok. But that is my concern since the date of registration is moving beyond 30-Sep-2017.
Will revert to my earlier point again. Can I avoid capital gains if the buyer of flat B pays the capital gains I would incur prior to 30-Sep-2017 and rest of the amount later ?
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Hi,
Note that both the flats are resale ones and not “under construction property” at the time of the sale/purchase transaction